The Keg Royalties Income Fund announces October 2010 cash distribution

October 12th 2010

VANCOUVER, October 12, 2010 – The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) today announced that its October 2010 distribution of $0.1065 cents per unit has been declared and is payable to unitholders of record as at October 21, 2010. The October 2010 distribution will be paid on October 29, 2010.

The Fund is a limited purpose, open-ended trust established under the laws of Ontario. The Fund indirectly owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd. ("KRL") in its Keg Steakhouses & Bars. In exchange for the use of those trademarks, KRL pays the Fund a royalty equal to 4% of the sales of all Keg restaurants in the royalty pool.

Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. Keg Restaurants Ltd. continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. The Keg has been named one of the “50 Best Employers in Canada” for the past eight years by the Globe and Mail’s Report on Business Magazine. For more information on our brand visit www.kegsteakhouse.com.